Earnings Review
Provisions, finance cost take Poonawalla Fincorp PAT dn 78%
This story was originally published at 19:47 IST on 25 July 2025
Register to read our real-time news.Informist, Friday, Jul. 25, 2025
Please click here to read all liners published on this story
--Poonawalla Fincorp Apr-Jun consol net profit INR 626.0 mln
--Analysts saw Poonawalla Fincorp Apr-Jun consol net profit INR 1.19 bln
--Poonawalla Fincorp Apr-Jun consol PAT INR 626.0 mln vs INR 2.92 bln yr ago
--Poonawalla Fincorp Apr-Jun consol revenue INR 13.14 bln vs INR 9.78 bln
--Poonawalla Fincorp Apr-Jun consol expenses INR 12.31 bln vs INR 6.06 bln
--Poonawalla Fincorp board OKs raising up to INR 15 bln via equity
--Poonawalla Fincorp to raise funds by issuing equity shrs at INR 452.51/shr
By Rizwan Ali
MUMBAI – Poonawalla Fincorp Ltd. Friday reported a sharp on-year fall in its net profit for the June quarter as total expenses doubled, driven mainly by a sharp rise in finance costs and provisions which negated the 32% rise in interest income and total income.
The company reported a consolidated net profit of INR 626 million for the latest quarter, up marginally on quarter but down 78% on year. The net profit was far lower than analysts' estimate of INR 1.2 billion. The company's interest income for the June quarter rose 32% on year to INR 11.85 billion, up 11% sequentially.
The non-banking finance company's total revenue for the reported quarter rose 34% to INR 13.14 billion, up 13% sequentially. The lender's other income fell to almost nil and as a result the total income was the same as total revenue. The company's provisions rose fivefold to INR 2.41 billion from INR 424 million and this doubled the total expenses to INR 12.30 billion from INR 6.06 billion. The non-banking finance company has reported INR 413 billion of assets under management, up 53% on year and up 15.8% on quarter.
The company said it will raise INR 15 billion by issuing 33.14 million shares to its promoter Rising Sun Holdings Pvt. Ltd. at INR 452.51 per share through a preferential allotment. This will take the paid-up capital of the company to INR 1.62 billion.
"The said capital raise is a strategic move not only strengthens the company's financial position but also reinforces the promoter's confidence in the company's long-term potential," the company said in a press release. "The company is well positioned to continue its growth trajectory, deliver value to its stakeholders and achieve its ambitious objectives in the competitive NBFC landscape."
On Friday, shares of the company ended 4.4% lower at INR 413.30 on the National Stock Exchange, before the company announced its earnings and the capital raising. End
Edited by Subhojit Sarkar
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
